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Corporate governance refers to the systems, principles, and processes by which companies are directed and controlled. In Kaunas and throughout the Republic of Lithuania, corporate governance is governed by a combination of national legislation, European Union directives, and best practice frameworks. The main purpose of corporate governance law is to ensure that companies operate ethically, responsibly, and transparently while protecting the interests of shareholders, employees, customers, and other stakeholders. This field covers company formation, management structures, shareholder rights, board responsibilities, conflict of interest policies, reporting obligations, and compliance with relevant laws and regulations.
People and businesses may require legal assistance in corporate governance for a variety of reasons. Common situations include:
A qualified lawyer can help navigate these complex matters, minimize legal risks, and safeguard the interests of your business or organization.
In Kaunas, corporate governance is primarily governed by Lithuanian national legislation, most notably the Law on Companies of the Republic of Lithuania, the Civil Code, and related legal acts. Some of the key aspects relevant to corporate governance include:
Legal frameworks are regularly updated to align with EU standards and to encourage good corporate governance practices.
Corporate governance refers to the structure and processes for the direction and control of companies. In Lithuania, strong governance helps build investor confidence, ensures legal compliance, and protects stakeholders' interests.
The most common business entities are the Private Limited Liability Company (UAB), Public Limited Liability Company (AB), partnerships, and branches of foreign companies.
Lithuania generally does not require company directors to be residents, but at least one individual must be authorized to receive official correspondence in the country.
Directors must act honestly, in the best interests of the company, comply with laws and internal policies, avoid conflicts of interest, and protect confidential information.
Shareholder meetings are usually held annually or as needed. They can be conducted in person or remotely, subject to the company's articles and Lithuanian law. Decisions are made by voting according to share ownership.
Companies must prepare annual financial statements in accordance with Lithuanian and International Accounting Standards and submit them to the Registry Centre. Larger or listed companies are subject to stricter disclosure requirements.
Non-compliance may result in fines, director liability, loss of business licenses, or even criminal charges in cases of serious misconduct.
Directors and managers must declare conflicts of interest and abstain from decisions where personal interests conflict with those of the company.
Yes, foreign nationals and companies can fully own and manage a business in Kaunas, subject to complying with Lithuanian legal requirements.
Auditors independently review company financials, ensuring accuracy and transparency. Audits are mandatory for certain companies, especially public or large entities.
Several organizations and governmental bodies offer resources and support regarding corporate governance in Lithuania, including:
Professional organizations and local law firms based in Kaunas can also provide guidance and legal representation when needed.
If you believe you need legal advice or representation in matters of corporate governance, consider the following steps:
Taking action early can help prevent issues from escalating, ensure compliance with Lithuanian laws, and support the long-term success and stability of your company in Kaunas.
